How to accept online payments

In any business, getting paid quickly and securely is key to your success. For those who own traditional brick-and-mortar businesses, accepting payments is a relatively straightforward process with cash, checks, debit, or credit cards presented in person at the point-of-sale (POS).

But for e-commerce business owners, accepting online payments can be a bit more complicated. With no face-to-face interaction, e-commerce businesses need high-tech payment processes and extra layers of security to ensure frictionless, safe, card-not-present (CNP) transactions.

While the behind-the-scenes mechanisms for accepting online payments is more complex, the tremendous business opportunities created by e-commerce make the effort worth it.

According to The Future of Payments Report 2025, the global e-commerce market is expected to expand by a staggering U.S. $1.4 trillion between 2020 and 2025.

At the same time, e-commerce is growing at more than twice the rate of in-store POS sales across the globe. Even in markets where e-commerce has been fully established, it is still growing, with Europe forecasted to grow 8% and North America expected to grow 7% as a percentage of all commerce by 2027.

So, if you are a new e-commerce business owner, or an entrepreneur looking to expand your business to online channels, now is the perfect time to take advantage of all the opportunities e-commerce has to offer. You just need to know how to accept online payments.

In this article, we will cover:

• The types of online payment methods
• The components of online payment processing
• How to accept credit cards online
• The benefits of accepting online payments
• The types of online payment methods

There are many types of online payment methods available to e-commerce business owners and their customers. Some of the newer online payment methods, like digital wallet payments, are experiencing tremendous growth in popularity, while older technologies, like bank transfers, continue to be an important component of online payment options.

When choosing a payment processing provider, make sure they offer the following types of online payment methods.

Credit card and debit card payments

Debit and credit cards are widely accepted as the most typical payment method for online transactions. In fact, debit cards are the most popular payment method in the U.K., accounting for over half of all payments in 2022. They are popular, fast, convenient and secure, so it is critical that you understand how to accept credit card payments online.

Looking ahead, the use of credit and debit cards online is expected to fall, but don’t let those predictions fool you. These cards will continue to fuel the majority of online transactions; they’ll just take on a different form as the in-wallet source of funds that power pass-through digital wallets like Apple Pay® and PayPal®.

Digital wallet payments

Digital wallet payments are quickly becoming the people’s payment choice above all other payment methods. They make it easy for customers to store and use their credit and debit cards for purchases, and they offer the fastest transaction processing speeds as well as enhanced security features.

Digital wallets are Europe’s leading e-commerce payment method, accounting for 30% of transaction value in 2023. These wallets are projected to grow at 17% CAGR to 2027, when they will account for around 40% of e-com value.*

The dominance of digital wallet payments is even more pronounced in the U.K., where digital wallets made up 38% of all e-commerce transactions in 2023, and that number is expected to grow to 50% by 2027.

Bank transfers

Bank transfers, also known as Bacs (Banking Automated Clearing System) transfers, involve directly transferring funds from the customer’s bank account to the merchant’s account. These payments have found new life in online shopping because this method bypasses the need for credit cards, and their typically high interest rates, so customers often chose to pay by bank transfer for the low transactional cost, simplicity and security.

App payments

Another type of online payment method is an app payment, or mobile payment, for online purchases. Customers use a mobile payment app like Google Pay or Zelle, that they link to their bank account or credit card to securely complete e-commerce transactions directly from their smartphone or tablet. Once a customer sets up a mobile payment app, they no longer have to manually type in credit card numbers, expiration dates, and other data to make an online payment, making app payments very fast and convenient.

Cryptocurrency payments

Cryptocurrency payments, where customers use digital currencies like Bitcoin or Ethereum to securely and anonymously complete transactions on e-commerce platforms, are the newest types of payments, and they are quickly growing in popularity.

According to a recent Statista report, the global value of cryptocurrency payments is expected to reach $1.4 trillion this year; that’s nearly triple the $590 billion estimate just four years earlier.

While it remains to be seen how cryptocurrency will shape the payments landscape, some businesses are finding a competitive edge and attracting new customers when they accept cryptocurrency payments.

Key online payment processing components

Online payment processing involves the following key components:

• A merchant account
• A payment gateway
• A payment processor
• An acquiring bank

To begin accepting online payments, you’ll need to find a payment processor, then you’ll need to open a merchant account for your business and, finally, you’ll need to integrate a payment gateway into your e-commerce website.

While this might all sound complicated, accepting credit card payments online is really as easy as one, two, three.

1. Find a payment processor

To accept credit card payments online, you will need to find a reliable payment processor. As you evaluate your options, consider your business needs now and for the long term, the fees you’re willing to accept, the security protocols offered by the payment processor and the compatibility of the payment processor’s solution with your existing website or e-commerce platform.

2. Open a merchant account

After choosing a payment processor, you’ll need to open a merchant account with that processor. Different from the business account you might use to run your daily operations, a merchant account is a specific type of bank account that allows you to accept credit card payments and ensures that funds are securely transferred to your business bank account after each transaction.

3. Payment gateway integration

Once you have a merchant account, the final step is to integrate a payment gateway into your website or e-commerce platform. A payment gateway is a type of software that acts as a bridge between your website and the payment processor ─ securely transmitting your customers’ payment data. Payment gateways may connect to your website or link to an offsite account portal.

Some payment gateways offer the ability to not only accept payments directly from your website, but also create shareable payment links that you can send to customers via email, text, or embedded in an electronic invoice, giving you more ways to ensure you get paid.

The benefits of online payments for businesses

Today’s online payment solutions give your customers more options to pay whenever, wherever and however they choose, and the more online payment methods you offer, the more successful you can be. In fact, the 2024 issue of the Worldpay Global Payments Report found that, “by offering additional payment methods, merchants can set themselves apart from competitors." This can also allow them to target new customer segments. A competitive edge is just one of the many benefits of online payments for businesses.

Here are a few others:

Expanded customer reach

By accepting payments online, businesses can reach customers beyond their physical location, tapping into global markets and serving a broader audience.

Convenience for customers

Online payments provide convenience for customers, allowing them to make purchases from anywhere at any time.

Increased sales opportunities

The benefits of accepting online payments also include increased sales opportunities. With the ability to accept payments online, businesses can capitalize on impulse purchases and cater to customers who prefer the ease and speed of online shopping.

Streamlined payment process

Online payment systems automate the payment process, reducing the need for manual actions.

Enhanced security

Many online payment platforms offer advanced security features, such as encryption, tokenization and fraud detection, to protect sensitive financial information and prevent unauthorized transactions.

Faster cash flow

Online payments often result in faster cash flow for businesses, with funds deposited directly into their bank accounts, reducing the time between making a sale and receiving payment.

Access to valuable data

Online payment systems capture valuable transaction data, which businesses can analyze to gain insights into customer behavior, preferences and purchasing patterns.

Security considerations

Because you never see the physical credit or debit card during the transaction, the security behind online payments is especially important. When choosing a payment processor, be sure they offer the following security measures:

Secure transactions

When your customers pay online, their personal payment data is transmitted across the internet. Make sure your payment processor offers encrypted connections, like SSL/TLS, to ensure the safe transfer of this data.

Fraud prevention

Beyond data transfer risks, fraud can occur online, so you want to be sure your payment processor has advanced tools and verification methods like 3D Secure to help prevent fraud before it happens.

Compliance assistance from Worldpay

With every online payment you receive, you need to be sure that you are complying with the Payment Card Industry Data Security Standard (PCI DSS). Learn how SaferPayments from Worldpay can help you meet those key compliance obligations.